Real Estate Magazine

Covid-19 second wave could impact luxury housing in short term?

The pandemic may have dampened most of the sectors, but real estate, especially the luxury homes segment, witnessed unprecedented demand.
Covid-19 has made people realise the value of open area, gym, yoga and other recreational facilities within the house for quality living. Also, work from home, the new normal, has raised demand for larger luxury homes that incorporate work spaces. We expect the demand for luxury housing to grow further.

The second wave could lead to an adverse impact on demand as many would want to wait and watch?

We do not foresee any adverse impact of the second wave of the pandemic in the long term. However, in the short term, there may be some impact as the focus has shifted to health and safety. As and when the pandemic subsides and vaccination programmed is rolled out aggressively, sales of luxury properties will surge on pent-up demand. There has not been any major change in fundamentals like low interest rate on home loans, growing trend of having home ownership instead of renting and requirement for bigger homes. Prices of luxury residential properties remain attractive.

Generally, luxury real estate is the playground of the rich. But today, the market has a growing number of upper middle class families and digital entrepreneurs. Does this development promise to open the segment to a new class of buyers?

There has always been an aspiration for better and luxury lifestyle among the wealthy. It’s no different for digital age entrepreneurs or professionals who’ve created a lot of wealth. What this pandemic has done, it has turned aspiration into necessity. So, we are definitely seeing a new set of customers in luxury residential market. By 2025, 45% of luxury home buyers will be millennials.

What trends have emerged after the pandemic in the luxury real estate segment?

One thing is very clearly visible — people need and are demanding and buy bigger and better homes. Villas and holiday homes in beautiful destinations at a drivable distance from the cities are quite sought after.